Rangers reduce debts

The OFEX listed Premier League club has published its financial report for the year ended 30 June 2005. The club reported a pre-tax profit of £12.4m after recording a one-off gain of £15m on a share transaction involving a subsidiary. Turnover fell from last year’s £57m to £55m, as income from European competition failed to match the previous year's £9.9m and dropped to £4.6m. The club posted an operating loss before exceptional items of £7.8m, an improvement on the £10.5m deficit recorded in 2004, and net debt fell from £74m in 2004 to £23m. The club made a £57m rights issue recently, largely underwritten by Chairman David Murray through MurrayMHL, the vehicle he used to acquire investment company's ENIC's 20% stake in the club. In total the 1-for-1 share offer raised £51.4m before expenses which helped bolster the club’s balance sheet and largely explained the improvement in the debt position. The club managed to pay-off £17.5m overdraft and long-term bank loans fell from last year’s £36m to £19m.

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